Per MLBTR
We can officially pencil Derek Holland into the Rangers' rotation for the foreseeable future. The Rangers agreed to terms with the left-hander on a five-year, $28.5MM contract extension. The deal covers the 2012-16 seasons and includes two club options, as MLBTR's Tim Dierkes first reported. Martini Sports Management represents the 25-year-old Holland.

Yovani Gallardo, Ricky Romero, Jon Lester, Clay Buchholz and Trevor Cahill signed five-year deals in the $30MM range at similar stages in their respective careers and were no doubt points of reference in talks leading up to today's agreement. Holland has more career innings than any of those pitchers did at the time of their extensions, but none of them had a career ERA above 3.94 at the time of their deals, while Holland has a career mark of 4.73. The deals for Cahill and Buchholz include two club options, while the others include just one.

Holland posted a 3.95 ERA with 7.4 K/9, 3.0 BB/9 and a 46.4% ground ball rate in 198 innings this past season. If he can replicate that level of performance, the deal will prove to be a success for the team. Yet Holland obtains financial security by agreeing to terms now instead of going year to year.

The Rangers signed Nelson Cruz and Elvis Andrus to extensions earlier in the offseason. However, the club didn't obtain additional years of control on either of those two deals.
Rangers probably could have waited a year to see if he can repeat or even improve on his 2011 season.